Canadian stocks ended deep in red Friday, amid concerns over global economic growth with some disappointing economic data globally. While job growth in the U.S. for May was anemic, data from China revealed the official purchasing managers index dropped in April. In Europe, manufacturing activity in the eurozone for May deteriorated at the strongest pace in nearly three years. The TSX shed about 2.3 percent for the week.
Toronto's main index, the S&P/TSX, closed Friday at 11,361.09, down 152.12 points or 1.32 percent. The S&P/TSX Composite Index touched an intraday high of 11,512.83 and a low of 11,344.43.
The TSX Venture Index closed at 1,291.59, up 1.86 points or 0.14 percent. The index opened at 1,277.90 compared to its previous close of 1,289.73.
Almost all components of the S&P/TSX Index were in the negative territory, except the Capped Materials Index and the Global Gold Index.
The Metals & Mining Index dropped 1.45 percent with First Quantum Minerals Ltd. (FM.TO) shedding 1.88 percent, Teck Resources Limited (TCK.B.TO) edging down 0.58 percent, and Lundin Mining Corp. (LUN.TO) down 1.48 percent. Osisko Mining Corp. (OSK.TO) gained 5.84 percent.
The Global Gold Index jumped 7 percent, with gold futures for August delivery surging $57.90 or 3.7 percent to close at $1,622.10 an ounce Friday on the NYMEX.
Among gold stocks, Goldcorp. (G.TO) jumped 8.57 percent, Barrick Gold (ABX.TO) surged 7.54 percent, and Kinross Gold (K.TO) also soared over 7 percent. Eldorado Gold Corp. (ELD.TO) moved up 3.75 percent, while B2Gold (BTO.TO) surged 8.36 percent.
The Materials Index gathered 3.57 percent with Rubicon Minerals Corp. (RMX.TO) gaining 5.61 percent and Potash Corporation of Saskatchewan Inc. (POT.TO) down 4.45 percent. Eastern Platinum Limited (ELR.TO) dropped over 11 percent.
U.S. crude oil futures for July delivery Friday dropped $3.30 or 3.8 percent to close at $83.23 a barrel on the NYMEX.
The Energy Index shed 3.26 percent with Suncor Energy Inc. (SU.TO) down 2 percent, while Canadian Natural Resources Limited (CNQ.TO) dropped 3.71 percent. TransGlobe Energy Corp. (TGL.TO) dropped over 7 percent, while Ithaca Energy Inc. (IAE.TO) dropped over 5 percent. Encana Corp (ECA.TO) shed 3.34 percent.
Heavyweights transportation systems maker Bombardier Inc. (BBD.B.TO) shed close to 3 percent, while smartphone maker Research In Motion Limited (RIM) edged down 0.19 percent.
The Financial Index fell 2.84 percent as Manulife Financial Corp. (MFC.TO) and Sun Life Financial Inc. (SLF.TO) surrendered over 5 percent. Royal Bank of Canada (RY.TO) and Bank of Nova Scotia (BNS.TO) dropped about 3 percent, while TD Bank (TD.TO) shed 2.77 percent.
In corporate news, Junior oil and natural gas exploration company Cequence Energy (CQE.TO) plunged over 10 percent after revealing plans to acquire Open Range Energy Corp. (ONR.TO) for an aggregate value of about C$103 million. Open Range Energy gained nearly 6 percent.
In economic news, Statistics Canada said real gross domestic product rose 0.5 percent in the first quarter, the same pace as in the previous quarter. On a monthly basis, real GDP by industry edged up 0.1 percent in March. Business investment contributed the most to first-quarter GDP growth, with final domestic demand growing 0.3 percent.
From the U.S., job growth in the country came in at an anemic rate for May, sending the unemployment rate up slightly for the month, data from the Labor Department indicated. The economy added a net of just 69,000 new jobs in May, far lower than the 150,000 expected by most economists. Additionally, the already weak job creation numbers posted for April were revised down sharply to show a gain of just 77,000 jobs, 38,000 fewer than the 115,000 initially reported.
Data from the U.S. Commerce Department showed personal income edged up by 0.2 percent in April following a 0.4 percent increase in March. Economists expected an increase of about 0.3 percent. The report also indicated personal spending rose by 0.3 percent in April after climbing by 0.2 percent in March, in line with expectations of economists.
Activity in the U.S. manufacturing sector continued to expand in the month of May, a report by the Institute for Supply Management showed Friday, although the pace of growth slowed more than economists had anticipated. The purchasing managers index fell to 53.5 in May from 54.8 in April, although a reading above 50 indicates continued growth in the manufacturing sector. Economists expected the index to edge down to a reading of 54.0.
China's manufacturing expansion slowed in May, partly due to a substantial reduction in new orders, a survey by the China Federation of Logistics and Purchasing (CFLP) showed Friday. The index fell more than expected to 50.4 in May from 53.3 in April. Economists expected the index to fall to 52. A PMI reading above 50, however, indicates expansion of the sector. The index remained above 50 for a sixth straight month.
Elsewhere, eurozone manufacturing activity deteriorated at the strongest pace in nearly three years in May, detailed results of a survey conducted by Markit Economics showed. The seasonally adjusted purchasing managers' index, a performance indicator for the manufacturing sector, fell to 45.1 in May from 45.9 in April. This was marginally above the flash estimate of 45. The PMI has signaled contraction in each of the past ten months.
A report from the Eurostat showed eurozone jobless rate at 11 percent in April, the same rate as seen in March, matching economists' expectations. About 17.4 million were unemployed in the euro area. Compared with March, the number of persons unemployed increased by 110,000 in April.
by RTT Staff Writer
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